The garage is also included in the deductions for the renovation of homes, provided by the government in the Relaunch Decree. It is one tax relief of 50% on a maximum sum of 96 thousand euros for the construction of parking spaces or garages.
Car garage deduction: how it works and how to use it
Here are the expenses that fall within the deduction:
- expenses for carrying out the interventions;
- expenses for professional services required by the type of intervention;
- VAT, stamp duty and fees paid for concessions, authorizations, and notifications of commencement of works;
- urbanization charges;
- any tax for the occupation of public land.
They do not fall within the criteria for the concession of the benefit the garage sold by the company that owns a building that has carried out the renovation of the residential property with a change of intended use.
For interventions that fall within the measure, las a deduction, it is divided into ten annual installments, all of the same amount.
Car garage deduction: the transfer
As in general for all building recovery interventions, to take advantage of the bonus, you will have to certify payments by speaking transfer, document (with 8% withholding tax) which must contain these items:
- reason for payment with reference to the law;
- tax code of the beneficiary of the deduction;
- VAT number or tax code of the person to whom the transfer is made.
If the payment is not made by bank transfer, the Revenue Agency explains through Circular no. 43 / E of 18 November 2016 the conditions to be met in order to benefit from the deduction in any case:
- the notary deed indicates the sums received by the company that sold the pertinent box
- the taxpayer obtains from the seller, in addition to the certification on the cost of realizing the box, a substitutive declaration of a notorious deed in which he certifies that the amounts credited in his favor have been included in the company’s accounts
Car garage deduction: the appurtenant box
In the case of construction of the appurtenant box, i.e. a parking space linked to the apartment, on the other hand, in addition to the receipt of the payment transfer, it is also necessary to possess the building permit showing the link of pertinence with the home.
As is also valid in the other cases of benefit for the renovation works, the deduction is recognized also to the cohabiting family member, even more uxorio, who actually incurred the expense, just write down the percentage of the contribution on the invoice.
If finally advance payments have been made, the deduction is due in relation to payments made by bank transfer during the year, and up to the construction cost declared by the company, provided that:
- the compromise of sale has been duly registered by the date of presentation of the declaration in which the deduction is asserted;
- the existence of the bond of relevance with the home appears from the compromise.
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